$EURUSD Expect rebound to 1.4376 but hold on to the position.

Update: I completely closed this position at 1.4200.

It’s always good when the first news in the morning is the realized profit of 240 pips in a single trade.
The limit order to take the profit from my first half of the position entered at 1.4545 was filed at 1.4305. It gave me 3.6% return.

Now I am left with the other half of the position, entered at 1.4489. (The new US regulation requires first-in first-out transaction.)

If my count is correct, we have just finished the black 3 wave at 1.4250. I would expect a rebound towards 1.4376. A 130pips rebound might give shorter term traders a good reason to get out. There is nothing wrong with that, but it’s just not my case in this market condition.

For now, I will keep my 1.4430 stop loss. If anticipated black 4 shows enough 4th wave characteristic (i.e. complex wave within a range), I may consider selling more before the final descent towards 1.4171 level.

Also notice how well Fibonacci support levels worked, and they agree well with the support levels from trend lines and previous lows & highs.

20100119-eurusd-60min

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Current risk exposure:

"","","","","$29,058.30","","","","","","","","","","","","","","","","","","","","41.95%","","","2.00%","","","","","","","","","","","","","","","","","","","","","","","","","","","",""
Rational Move always use stop loss orders, and this is the worse case potential loss over the capital for the currently open positions. This is unrealized loss is less or equal to the risk exposure.

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This is a normalized value: the return on each trade is normalized against the capital just before the trade execution. This way, it is eliminating the effect by the capital change from deposits and withdrawals. The calculation thus reflects the trading performance of each trade. The value does not contain unrealized profits and losses. RM's trading strategy never risks more than 5% of the present capital. Not including subtraction by tax.

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